The Department for Work and Pensions (DWP) has confirmed it is sending letters to state pensioners this year as part of a campaign to encourage claims for Pension Credit, a benefit worth up to £3,900 annually. During a Work and Pensions Committee hearing, Secretary of State Pat McFadden revealed that the government is emphasizing the link between Pension Credit and free TV licences for those aged 75 and over to boost uptake.
What is Pension Credit?
Pension Credit is a tax-free, means-tested benefit for individuals above State Pension age with low income. It increases weekly income to a guaranteed minimum of £238.00 for single claimants (equivalent to £952 monthly) or £363.25 for couples. Additionally, it serves as a gateway to other financial assistance, including free TV licences for those aged 75 or over living with a partner who receives Pension Credit.
Campaign Strategy
Approximately 900,000 eligible pensioners have yet to claim the benefit. The DWP is focusing on two main approaches: targeted awareness initiatives and encouraging relatives and friends to check eligibility for older people. By addressing the pride barrier that prevents some from claiming, the DWP hopes to increase take-up. Previous campaigns featuring the late Len Goodman have shown success.
Mr McFadden stated: "We are always encouraging people to claim the pension credit to which they are entitled. There have been long-term issues with underclaiming. We have had information campaigns and numbers have gone up, but more needs to be done."
Committee member John Milne noted that take-up remains at about two-thirds, calling it "a scandal" and urging new ideas. Mr McFadden responded: "Let me take every opportunity to encourage anyone watching to apply. They have nothing to lose. It is theirs as a right."
Data Sharing and Outreach
Sir Peter Schofield, Permanent Secretary at the DWP, outlined measures including sending letters to housing benefit recipients. He said: "We identify people applying for housing benefit who are of pension age and trigger outreach. We issued 120,000 letters a couple of years ago, and this is now regular."
The DWP is also launching a new campaign urging younger people to check on older relatives, friends, and neighbours. Sir Peter added: "It is a society thing for us all to be thinking about older people and what we can do for those not aware of their entitlements."
The government website for Pension Credit applications is available online.
